Find the hedge ratio for put option

Find the hedge ratio for put option

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Reference no: EM131523925

Find the hedge ratio for a put option on $15,000 with a strike price of €10,000. In one period the exchange rate (currently S($/€) = $1.50/€) can increase by 60% or decrease by 37.5% (i.e. u = 1.6 and d = 0.625).

Reference no: EM131523925

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